Multiple Choice
Suppose that there is a financial crisis,and people choose to spend less.As a result,velocity drops by 5 percent.According to market monetarists,if the GDP target growth rate is 3 percent,the Fed would need to increase the money supply by ______________ percent in order to achieve their GDP target.
A) 8
B) 2
C) 4
D) 5
Correct Answer:
Verified
Correct Answer:
Verified
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